$21,000,000 Construction Financing to 80% of Cost Multi-Family Development in Brentwood, Los Angeles

Transaction Description: Jonathan Lee arranged the ground-up construction financing for 49 unit multi-family rental building in Brentwood, California. The subject will be mapped for condominiums for additional exit flexibility. Sized to 80% of cost, the 30 month loan is priced at LIBOR + 2.5%, netting an all-in coupon of less than 3.0% today. Recourse is limited to the top 50% of the loan amount.

Challenge: Project features units that are larger than typical rental products in this market, resulting in a higher total rental dollar per unit. A high land basis was required to support the Sponsor equity contribution.

Solution: Market research, area demographics and asset quality supported the larger unit footprints and thus the higher gross dollar rents underwritten. Exit flexibility added additional comfort to support the higher land basis and value created by the Sponsor through his assemblage and entitlements.